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Pressured As CPI Prints Below Expectations

NZD

NZD/USD prints at $0.6170/75, the pair is ~0.5% softer today.

  • Q1 CPI printed below expectations, CPI fell to 1.2% Q/Q from 1.4% Q/Q in Q4 2022 an uptick to 1.5% Q/Q had been expected. Tradeable CPI fell to 0.7% Q/Q from 1.4% and Non-Tradeable CPI ticked marginally higher to 1.7% Q/Q from 1.5%.
  • NZD/USD has been pressured in the aftermath of the release, support is seen at $0.6162 the low from April 17. A break through here opens year to date lows at $0.6085.
  • AUD/NZD has firmed, the pair is up ~0.4%. The pair now sits at the 200-Day EMA ($1.0871). A break through here opens $1.0970, 76.4% Fibonacci retracement of the Feb-Apr bear leg, and $1.1088 the 2023 high.

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